CLAW Test 1 Study Guide

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Discovery is the process of obtaining information from an opposing party before trial.

True

Duty-based ethical standards often come from religious precepts.

True

Effective corporate ethical policies must be clearly communicated to employees.

True

Ethical reasoning is the process through which an individual links his or her moral convictions or ethical standards to the particular situation at hand.

True

Ethics is the study of the principles and conduct that guide business decision making based on what is right and good.

True

Failure to live up to a standard of care may be an act or an omission.

True

False imprisonment occurs when a person restrains another intentionally and without justification

True

Focusing on a firm's short-run profits without considering the company's long-term needs may be acting unethically.

True

For jurisdictional purposes, corporations are considered legal persons

True

Generally, a foreign court's decision can be enforced in the United States

True

Government regulations can preempt claims for product liability

True

Harm must be foreseeable to be considered the proximate cause of an injury in negligence.

True

Hearsay evidence is testimony someone gives in court about a statement made by someone else who was not under oath at the time.

True

If a discovery request involves confidential business information, the scope of the request can be limited.

True

If it can be shown that a trespass to land was warranted, a complete defense exists.

True

If no harm results from an allegedly negligent act, there is no liability.

True

If people merely comply with the law, they are acting at the lowest ethical level society will tolerate

True

In a corporation, managers are often faced with ethical trade-offs when a certain decision will benefit one group, but harm another

True

In a federal form of government, the national government shares sovereign power with the states

True

In ethical terms, a cost-benefit analysis is an assessment of the negative and positive effects of alternative actions on individuals.

True

In many cases, a court can exercise jurisdiction over an out-of-state defendant who has done business in the state only over the Internet

True

In most states, if neither party requests a jury, the court presumes the parties waive this right.

True

International treaties often stipulate arbitration for resolving disputes

True

Law consists of enforceable rules governing relationships among individuals and between individuals and their society

True

Legitimate competitive behavior is a permissible interference with a contractual relationship even if it results in a breaking of the contract.

True

Litigation is the process of resolving a dispute through the court system.

True

Management's behavior sets the ethical tone of a firm.

True

Managers must apply the same ethical standards to their employees as they do to themselves.

True

Many different laws may affect a single business transaction.

True

Most state trial court decisions are not published

True

Negotiation can involve the parties to a dispute and their attorneys

True

People who keep domestic animals are strictly liable for any harm inflicted by the animals.

True

Procedural due process requires that any government decision to take a person's property must be made equitably.

True

Procedural law consists of all laws that outline the methods of enforcing rights.

True

Proximate cause exists when the connection between an act and an injury is strong enough to justify imposing liability.

True

Recovery in a product liability case may be limited when it can be shown that the plaintiff misused the product

True

Remedies in equity include decrees of specific performance

True

Remedies in equity include injunctions.

True

Small claims courts are inferior trial courts.

True

Some constitutional protections apply to business entities.

True

Some courts consider the negligent actions of both the plaintiff and the defendant when apportioning liability in a product liability action.

True

Some provisions of U.S. bribery laws are directed toward accountants.

True

Some states limit the application of strict product liability to situations involving personal injuries

True

Sometimes, there is no "good" answer to the ethical questions that arise

True

State courts are superior to federal courts.

True

Statutes are laws enacted by Congress and the state legislatures and comprise one of the sources of American law.

True

Statutory law includes state statutes.

True

Substantive due process limits what the government can do in its legislative and executive capacities.

True

The Bill of Rights protects individuals against types of interference by the federal government

True

The Constitution permits Congress to regulate interstate commerce.

True

The Eighth Amendment prohibits excessive bail and fines

True

The First Amendment prevents limits from being placed on independent political expenditures by corporations.

True

The Fourteenth Amendment guarantees a right to due process of law.

True

The U.S. Constitution is the origin of the authority for making laws that govern business

True

The bases of all torts are wrongs and compensation.

True

The checks and balances in the U.S. Constitution prevent any one branch of government from exercising too much power.

True

The courts, in interpreting statutory law, may rely on sources outside of the statute (such as legislative history in response to common law precedents) as a guide to what the legislators intended.

True

The courts, in interpreting statutory law, may rely on the common law as a guide to what the legislators intended

True

The expenses associated with an appeal can be considerable.

True

The federal government can regulate almost every commercial enterprise in the United States

True

The judicial branch has the power to hold actions of the other branches of government unconstitutional.

True

The minimum-contacts requirement is usually met if a corporation advertises or sells its products within a state.

True

The purpose of tort law is to provide remedies for the violation of various protected interests

True

The stability and predictability of the law are essential to business activities

True

The study of ethics goes beyond legal requirements to evaluate what is right for society

True

The taking of electronic records and data can form the basis of a conversion claim.

True

The term alternative dispute resolution refers to methods for resolving disputes outside the traditional judicial process.

True

The term venue refers to the location of a trial.

True

The use of evidence outside the pleadings distinguishes the motion for summary judgment from the motion for judgment on the pleadings.

True

To avoid product liability, a manufacturer must exercise due care in using the appropriate production process.

True

To be liable for product liability, a seller must normally be engaged in the business of distributing the product that causes harm by its use.

True

To succeed in a product liability suit, an injured plaintiff must show that a product's defect was the proximate cause of the injury.

True

Tort law provides remedies for acts that cause damage to property.

True

Trials courts conduct trials.

True

Under the supremacy clause, a valid federal statute or regulation will preempt a conflicting state or local law or regulation on the same general subject

True

When a user is injured as a result of a seller's misrepresentation, the basis of product liability may be the tort of fraud.

True

A jury instructs a judge in the law that applies in a case.

False

A key to avoiding business disputes is to go ahead without thinking ahead.

False

A person directly involved in the events concerning a lawsuit is known as an expert witness.

False

A plaintiff who voluntarily enters into a risky situation, knowing the risk involved, will be allowed to recover for any consequent injury.

False

Constitutional law includes only the U.S. Constitution.

False

Conversion is limited to theft.

False

Courts do not depart from precedents

False

Criminal acts are prohibited only by federal government statutes

False

Only a defendant can file a motion to dismiss.

False

Only a defendant may file a motion for summary judgment

False

The First Amendment protects commercial speech more extensively than noncommercial speech

False

The legality of an action is always clear.

False

Voir dire refers to the seriousness of the controversy in a case.

False

"UCC 2-207(1)" is a citation to Uniform Commercial Code Section 2-207, subsection 1.

True

. The dangers associated with using sharp knives are so commonly known that manufacturers need not warn users of those dangers.

True

A business firm may have to comply with the laws of any jurisdiction in which it actively targets customers

True

A case is remanded when it is sent back to a trial court for further proceedings consistent with the opinion of the appellate court.

True

A citation identifies the publication in which a legal authority can be found.

True

A company that acts ethically, or in good faith, has a stronger position in litigation than a company that does not.

True

A successful defense releases the defendant from liability for a tortious act

True

Acting in good faith gives a business firm a better chance of defending its actions in court

True

An individual's privacy rights can be protected by state law

True

Any relevant material, including information stored electronically, can be the object of a discovery request

True

Before a lawsuit begins, the court must have proof that the defendant was notified of the lawsuit

True

Corporations can be perceived as owing ethical duties to groups other than their shareholders

True

Damages are a remedy at law.

True

If a tax measure is reasonable, it is generally held to be within the national taxing power.

True

It may be unethical for a company to refuse to negotiate liability claims for alleged injuries because of a faulty product.

True

Laws and government regulations affect almost all business activities.

True

One defense to product liability is to show that there is no basis for the plaintiff's claim

True

Religious rules generally are absolute with respect to the behavior of their adherents.

True

Suppliers are generally required to expect reasonably foreseeable misuses of their products.

True

The role of the courts is to interpret and apply the laws.

True

A choice-of-law clause is a provision in a contract that excuses a party from liability for nonperformance due to "acts of God."

False

A counterclaim is raised by a plaintiff against a defendant's answer.

False

A court of appeals re-hears all of the evidence introduced at trial.

False

A default judgment is entered against a party only on proof that he or she was at fault in the matter at issue

False

A jury's good sense and careful consideration of consequences is known as jurisprudence.

False

A justiciable controversy is a case in which the court's decision—the "justice" that will be served—will be controversial

False

A law that has any impact on religion is unconstitutional

False

A motion for a new trial will be granted only if the trial judge feels that it is appropriate to grant a judgment for the other side.

False

A motion for summary judgment may be made before, during, or after a trial

False

A person assumes all risks associated with any activity in which he or she participates.

False

A product liability action based on negligence requires privity of contract between the injured plaintiff and the defendant-manufacturer

False

A reviewing court may reverse a trial court's judgment only in a case in which the plaintiff lost.

False

A state case typically originates in a federal court.

False

A summary judgment is issued only if there is no genuine question of fact.

False

A tortfeasor is one who wrongfully alleges that a tort has been committed.

False

A trial begins with the plaintiff's attorney's direct examination of the first witness.

False

According to utilitarianism, it does not matter how many people suffer a negative effect from an act

False

Adhering strictly to all business laws is all that is necessary to fulfill all business ethics obligations

False

Administrative law includes only state regulations

False

Administrative law is a source of American law that is consists of statutes

False

An action in strict product liability requires that a product be reasonably dangerous to a user or consumer.

False

Arbitration that is mandated by a court is often binding on the parties.

False

As a defense to product liability, comparative negligence completely absolves a defendant of liability.

False

Assumption of risk is no defense to a product liability action

False

At the beginning of a trial, only the defendant's attorney makes an opening statement.

False

Business owners' misbehavior has no negative consequences for their business.

False

Concurrent jurisdiction exists when only state courts have the power to hear a particular case.

False

Criminal law focuses on rights and duties that exist between persons.

False

Disparagement of property is a general term for the specific tort of appropriation.

False

Early neutral case evaluation refers to the resolution of a case before the dispute becomes contentious, when the parties' positions are said to be "neutral."

False

Either party may appeal a jury's verdict but only the plaintiff may appeal a judge's ruling

False

Ethics is as clearly defined as the law

False

For fraud to occur, seller's talk must be involved.

False

Fraud occurs only when there is justifiable reliance on a true statement.

False

Generally, the strict liability of manufactures and other sellers does not extend to injured bystanders.

False

If an action is legal, it is ethical.

False

In a common law system, judges generally follow stare decisis unless there is a compelling reason to overturn a precedent.

False

In mediation, the mediator proposes a solution and makes a decision resolving the dispute

False

In most states, in suits brought in small claims courts, lawyers are allowed.

False

In most states, the courts no longer grant "equitable" remedies

False

Interrogatories are written questions for which written answers are prepared by a judge.

False

It is guaranteed that any judgment will be enforceable.

False

Marketing puffery has traditionally been recognized in product liability law as a product defect.

False

Minimum contacts with a jurisdiction are never enough to support jurisdiction over a nonresident defendant.

False

Moral pressure constitutes false imprisonment

False

Most online dispute resolution services apply international principles promulgated by the United Nations to resolve disputes.

False

Negotiation is the most complex form of alternative dispute resolution.

False

No court engages in a risk-utility analysis to determine whether the risk of harm from a product is outweighed by its utility.

False

No court offers mediation as an option before a case goes to trial.

False

No party can appeal a judge's ruling on a pretrial motion

False

One characteristic of an abnormally dangerous activity is that it involves a low risk of serious harm

False

Only persons who are explicitly invited onto a business's premises are considered business invitees

False

Procedural law is irrelevant with respect to a person's ability to pursue a legal claim.

False

Service of process is the process of obtaining information from an opposing party before trial.

False

Some cases decided by federal courts of appeals are not subject to review by the United States Supreme Court

False

Some risks are obvious but, with respect to the duty of care required to establish negligence, a warning is always necessary

False

Specifically targeting the customers of a competitor is always a legitimate business practice.

False

Stare decisis is a doctrine obligating judges to help persons who have failed to protect their own rights.

False

States do not have exclusive jurisdiction on any matter.

False

Statutory law does not include county ordinances.

False

The Constitution expressly delegated to the states the power to regulate interstate commerce

False

The Fifth Amendment prohibits unreasonable searches and seizures of persons or property

False

The First Amendment protects even speech that violates criminal laws

False

The First Amendment protects symbolic speech without limitation.

False

The President determines the jurisdiction of the federal courts.

False

The Second Amendment to the U.S. Constitution reserves all powers not delegated to the national government to the states

False

The U.S. Constitution explicitly mentions a general right to privacy

False

The U.S. Constitution reserves to the federal government all powers not granted to the states.

False

The United States Supreme Court does not have original jurisdiction in any case.

False

The amount in controversy in a diversity of citizenship case must be more than $1 million before a federal court can take jurisdiction

False

The common law is a term for the laws that are familiar to most of us

False

The concept of corporate social responsibility is imposed on corporations by law

False

The doctrine of strict liability can be applied to sellers of goods, but not distributors.

False

The effectiveness of internal company codes of ethics is determined by the degree of their enforcement by legal authorities

False

The establishment clause requires a complete separation of church and state.

False

The extreme risk of an activity is a defense against imposing strict liability.

False

The most widely used defense in negligence actions is consent.

False

The party against whom a lawsuit is brought is the plaintiff or petitioner

False

The rights secured by the Bill of Rights are absolute

False

The states can establish laws that substantially affect trade and commerce.

False

The term common law refers to law that is common throughout the world.

False

The term police power encompasses just the enforcement of criminal laws.

False

The verdict in a summary jury trial is binding.

False

There is one uniform set of rules of procedure for all courts.

False

Through tort law, society compensates those who inflict injuries on others.

False

To avoid liability for negligence, a business owner must protect its customers against all risks.

False

To commit an intentional tort, a person must have an evil or harmful motive.

False

To have standing to sue, a party must be "standing" in the geographical jurisdiction of the court in which a suit is filed.

False

To support the imposition of strict product liability, a product must be substantially changed from the time it is sold to the time an injury occurs.

False

Under a theory of market-share liability, a manufacturer sells "shares" of its potential strict liability and thereby spreads the risk and the cost

False

Under the Constitution, speech—oral, written, or symbolized by conduct—cannot be restricted in any way.

False

Under the Constitution, the judicial branch is responsible for foreign affairs

False

Under the doctrine of comparative negligence, only the plaintiff's negligence is taken into consideration

False

Under the doctrine of strict liability, if there is no fault, there is no liability.

False

Under the doctrine of strict liability, liability is imposed only if a person fails to use reasonable care

False

Under the principle of rights theory, one person's principles are as "right" as another's.

False

Under the theory of negligence, the duty of care requires an intentional act.

False

Unintentionally causing a party to break a contract may constitute wrongful interference with a contractual relationship.

False

Unless a corporation violates a law, its actions do not raise questions about corporate ethics.

False

When a defendant finishes introducing evidence, the trial is concluded

False

When all the judges (or justices) agree on a decision, a majority opinion is written for the entire court.

False

Whether a law is constitutional depends on its source

False

Under the Constitution, the judicial branch makes the laws.

Legislative

A court can exercise jurisdiction over property located that is located within its boundaries

True

A court's review of an arbitrator's award may be restricted

True

A defamatory statement must be communicated to a third party to be actionable.

True

A defense available in an action based on a negligence theory is that the plaintiff failed to prove one or more of the required elements.

True

A design defect in a product will support the imposition of liability on a strict product liability basis.

True

A law that discriminates based on gender must substantially relate to an important government objective to be valid under the equal protection clause.

True

A law that prohibits or inhibits a person from exercising a fundamental right because of their national origin will be subject to "strict scrutiny" under the equal protection clause.

True

A manufacturer's duty of care extends to the inspection and testing of products bought to incorporate in the final product.

True

A manufacturing defect is a departure from a product unit's design specifications that results in products that are physically flawed

True

A motion for a directed verdict is also known as a motion for judgment as a matter of law

True

A product contains a manufacturing defect when the product departs from its intended design even though all possible care was exercised.

True

A product liability claim may be based on the tort theory of fraud

True

A public policy underlying the imposition of strict product liability is that consumers should be protected against unsafe products.

True

A statute of limitations may restrict the time within which an action in product liability may be brought

True

A statute of repose places outer time limits on product liability actions

True

Administrative law consists of the rules, orders, and decisions of administrative agencies.

True

All powers not specifically delegated to the federal government are reserved to the states

True

An action may be legal but not ethical

True

An answer can deny the allegations made in a complaint.

True

An appellate court can reverse the decision of a trial court that erred.

True

An inadequate warning will support the imposition of liability on a strict product liability basis.

True

An individual's privacy is invaded if his or her likeness is used for commercial purposes without permission.

True

Before a trial, the plaintiff can file a motion to dismiss.

True

Bribery of foreign government officials is both an ethical and a legal issue.

True

Business decision makers are expected to make decisions that are ethically sound.

True

Business ethics looks at the decisions that businesses make or have to make and whether those decisions are right or wrong.

True

Cases arising between citizens of different states involve diversity of citizenship

True

Codes of ethical conduct can indicate how employees are expected to act.

True

Companies are required to set up confidential systems so that employees can "raise red flags" about suspected illegal or unethical accounting practices.

True

Companies that provide employee support through ethical training programs (as opposed to companies that provide no training) generally have more effective ethics codes.

True

Corporations can be viewed as "citizens" that are expected to participate in bettering society.

True

Defense of others is a defense to an allegation of assault.

True

Defense of others is a defense to an allegation of battery.

True


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